Cathie Wood’s Bold Investment Moves Amidst Falling Stocks
Cathie Wood, the co-founder and CEO of Ark Invest, has taken advantage of the recent dip in stock prices, actively purchasing shares for her high-growth exchange-traded funds (ETFs).
Recent Purchases
On Thursday, Wood made a flurry of transactions, increasing her stakes in several companies, including Tesla (NASDAQ: TSLA), Iridium Communications (NASDAQ: IRDM), and Intellia Therapeutics (NASDAQ: NTLA). Let’s take a closer look at these stocks, which have experienced significant declines recently.
Tesla’s Tumultuous Times
Tesla’s share price has plummeted by over 50% since reaching an all-time high just three months ago. The electric car manufacturer has struggled, posting stagnant sales last year, breaking a streak of double-digit growth that lasted for a decade. Moreover, Tesla fell short of Wall Street’s profit expectations in three out of the last four quarters.
Potential Upsides for Tesla
Despite these setbacks, optimism remains. Market analysts believe Tesla can bounce back to double-digit growth this year, bolstered by new models in development. Recently, the stock has seen an uptick, stimulated by a timely analyst upgrade from Andres Sheppard at Cantor Fitzgerald, who keeps a bullish stance with a price target of $425—indicating an 80% upside from current levels.
Iridium’s Recovery Struggles
Similarly, Iridium Communications, a satellite communications company, has seen its stock significantly drop despite earlier gains this year. With a steady subscriber base of 2.5 million—up 8% from last year—Iridium’s growth has been modest, having only achieved double-digit growth in one of the last six years. As competitive pressures grow, analyst Mathieu Robilliard of Barclays has revised his price target lower, expressing concerns about Iridium’s growth rate.
Intellia’s Dramatic Decline
On the other hand, Intellia Therapeutics has faced a more dire situation, with its stock plummeting by 96% from its peak nearly five years ago. Nonetheless, analysts remain hopeful about its NTLA-2002 gene-editing candidate, which offers a one-time treatment for genetic disorders. Mitchell Kapoor at Wainwright maintains a bullish outlook, suggesting a price target of $30. However, given the stock’s current price, reaching this target will require significant growth.
Conclusion
As Wood continues to invest in key stocks amidst turbulent market conditions, the outlook for these companies remains uncertain but hopeful, depending largely on upcoming developments and overall market dynamics.
